Jio Posts 10.8% Revenue and Profit Growth as Capex Halves

Reliance Jio Infocomm reported revenue from operations of ₹35,307 crore for the quarter ended September 30, 2026, up 10.8 percent year-on-year, while net profit rose by the same percentage to ₹7,722 crore. India's largest telecom operator delivered the double-digit growth even as finance costs climbed 41 percent and cash spending on network assets fell by more than half.

Revenue grew from ₹31,857 crore in the September 2025 quarter, an increase of ₹3,450 crore. Sequential growth was 3.2 percent from ₹34,212 crore in the June 2026 quarter. Profit before tax reached ₹10,375 crore, up 10.8 percent from ₹9,365 crore.

The quarter's standout figure sits below the income statement. Jio spent ₹9,430 crore on property, plant, equipment, spectrum and other intangible assets in the first half of FY27, down 52.8 percent from ₹19,970 crore in the same period a year earlier.

What does the capex cut mean?

The halving of investment cash outflow signals a shift by the operator toward optimizing existing network assets after years of aggressive infrastructure expansion, including its 5G rollout. The company also paid ₹2,638 crore toward deferred spectrum liabilities in the six-month period, against ₹2,412 crore a year earlier, bringing combined cash outlay to ₹12,068 crore.

The financial statement does not break down spending across 5G radio, fiber broadband, fixed wireless access or other categories. That absence limits what outsiders can conclude about the pace of individual network programs.

Margins improved despite rising costs

Operating margin strengthened to 30.2 percent from 29 percent in the September 2025 quarter and 29.1 percent in the preceding quarter. Net profit margin held at 18.6 percent year-on-year. Total income, including other income, rose 11.3 percent to ₹36,136 crore, with other income up 38.4 percent to ₹829 crore.

The value of services increased 10.7 percent to ₹41,536 crore from ₹37,525 crore.

Expense lines grew unevenly. Network operating expenses reached ₹8,729 crore, up 3.4 percent from ₹8,443 crore but slightly down from ₹8,799 crore in the June quarter — cost growth well below revenue growth. Other categories rose faster:

• License fees and spectrum charges: ₹3,157 crore, up 8.3 percent
• Access charges: ₹748 crore, up 14.7 percent
• Selling and distribution expenses: ₹1,239 crore, up 14.6 percent
• Employee benefits: ₹503 crore, up 5.9 percent
• Other expenses: ₹1,255 crore, up 23.6 percent

Total expenses increased 11.6 percent to ₹25,761 crore from ₹23,091 crore.

Finance costs remain the pressure point

Finance costs of ₹2,986 crore marked a 41 percent rise from ₹2,118 crore a year earlier and an increase from ₹2,958 crore in the prior quarter. Depreciation and amortization grew 11.8 percent to ₹7,144 crore, reflecting the asset base tied to network infrastructure, spectrum and digital services.

For the first half of FY27, finance costs climbed 41.6 percent to ₹5,944 crore from ₹4,199 crore. Depreciation and amortization rose 12.3 percent to ₹14,143 crore. Deferred tax expenses for the quarter were ₹2,653 crore, against ₹2,393 crore a year earlier.

Half-year figures confirm the trend

First-half revenue from operations increased 10.8 percent to ₹69,519 crore from ₹62,739 crore. The value of services for the six months rose to ₹81,780 crore from ₹73,836 crore. Half-year net profit gained 8.8 percent to ₹14,889 crore from ₹13,683 crore, with profit before tax up 8.9 percent at ₹20,008 crore.

Quarter-on-quarter, net profit increased 7.7 percent from ₹7,167 crore in Q1 FY27.

The results show Jio sustaining double-digit top-line growth while converting a maturing capex cycle into improved operating efficiency, even as financing and depreciation burdens from its 5G, fiber and digital infrastructure build remain material considerations for returns. With investment cash outflows now at less than half their prior-year level, the operator enters the second half of FY27 positioned to demonstrate whether reduced spending can hold alongside continued revenue expansion and 5G monetization.